LIC clocks multi-fold rise in embedded value
State-run life insurer’s EV surges to Rs5,41,492 cr as on March 31, 2022, from mere Rs95,600 cr a year ago; EV will be declared by LIC every 6 mths: Chairman Raj Kumar
LIC's embedded value pegged at Rs 5.41 lakh crore as of March 2022
Mumbai: The embedded value of state-run life insurer LIC has improved to Rs5,41,492 crore as on March 31, 2022, from mere Rs95,600 crore a year ago. This was declared by the LIC chairman, MR Kumar in a media briefing here this evening. The EV of LIC was Rs95,605 crore (Rs956 bn) as on March 31, 2021, and Rs5,39,686 crore (Rs5,397 bn) on September 30.
The LIC MD, Raj Kumar said that now on the EV will be declared by LIC every six months.
As on March 31, the IEV of LIC of India has been determined to be Rs5,41,492 crore (Rs 5,414.9 bn) as compared to Rs95,605 crore (Rs956 bn) as on March 31 and Rs5,39,686 crore (Rs5,397 bn) on September 30. The IEV as of September 30, 2021, was significantly higher than the IEV of March 2021 due to the bifurcation of fund that was carried out by LIC pursuant to changes in the LIC Act during the FY 2021-22.
The Value of New Business (VNB) for year ended March 31 has been determined to be Rs 7,619 Crore (Rs.76.19 Bn) as compared to Rs 4,167 Crore (Rs 41.67 Bn) for the year ended March 31, 2021. Also, the VNB for the six-month period ended September 30 was Rs 1,583 Crore (Rs
15.83 Bn).
The VNB margin, for the year ended March 31 is 15.1 per cent as compared to VNB margin of 9.9 per cent for the year ended March 31.
The Annualised Premium Equivalent (APE) for year ended March 31 is Rs 50,390 Crore (Rs 503.90 billion). The APE for year ended March 31, 2021 was Rs 45,588 Crore (Rs 455.88 billion) and the APE considered for arriving at VNB for period ended March 31, 2021 was Rs. 42,170 Crore (Rs. 421.70 billion). Further for the period ended March 31, 2022, the APE of Individual business and Group business was Rs 35,572 crore (Rs 3,55.72 billion) and Rs 14,818 crore (Rs 148.18 billion) respectively. Therefore, the individual business accounted for 70.59 per cent of APE and Group business accounted for 29.41 per cent of APE.
